WASHINGTON, D.C. — Blackstone Legal and its owners will be permanently banned from the debt collection industry following a Federal Trade Commission (FTC) lawsuit that alleged the operation misled and harassed consumers to collect fake debts.
The FTC charged Blackstone Legal, its affiliated companies, and owners Ryan and Mitchell Evans in February 2025, accusing them of pressuring consumers into paying non-existent debts. The operation allegedly used false threats of lawsuits, credit damage, and wage garnishment to coerce payments, resulting in consumer losses amounting to millions of dollars.
“This operation collected on false debt and harassed consumers with fake threats of lawsuits and damaged credit if they refused to pay,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Scams like this cause significant harm to consumers and undermine legitimate debt collection activity, and the FTC will continue to act to stop them.”
According to the proposed settlement order, the defendants are permanently barred from debt collection activities and prohibited from making false claims or using deceptive practices when selling or marketing any goods or services. The settlement also requires the defendants to surrender most of their assets, including bank and investment accounts, to satisfy a monetary judgment of $8,254,368. Due to their inability to pay the full amount, the judgment is partially suspended. However, if they are found to have misrepresented their financial status, the full amount will become due immediately.
The FTC Commissioners unanimously approved the stipulated final order, which has been filed in the U.S. District Court for the Central District of California.
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